China returns to the Bitcoin mining map, but clandestinely.
Founder of terra USD changes strategy and now wants to save LUNA.
Among the most outstanding news of the week is the issue of the price of bitcoin (BTC), which continues to decline for several consecutive weeks.
In the midst of the bear market, the cryptocurrency experienced in these seven days a smaller drop than that suffered by Nasdaq shares, an unusual fact given the high correlation that exists between the cryptocurrency market and the stock market. Until now, bitcoin price declines have been steeper than stock price declines. Although the general trend is bearish, a lateralization trend is observed in the price of BTC, which has stabilized in the range of USD 29,000 to USD 30,000.
The fall of the cryptocurrency in the last seven days is estimated at 2.3%. At the time of writing, bitcoin is trading at USD 30,030, as reflected in the market price of Latin America and Spain, according to the CriptoNoticias price calculator.
These are the most important news:
- This week the Nasdaq index, led by the main technology companies, resulted in the greatest losses (estimated in the order of 4.73%), followed by the S&P 500 and the Dow Jones. This, while the price of bitcoin suffered a loss of just over 2%. Is about a little more than half of the Nasdaq loss, an fact that sets a new precedent in the behavior of cryptocurrency in relation to risk assets. Meanwhile, analysts from the Bank for International Settlements talk about the impact that the exponential expansion of the industry linked to bitcoin has had on the financial sector. They fear that the growing interest in the ecosystem could be leaving the banks behind.
- The drop in the price of bitcoin continues for more than seven consecutive weeks. With cryptocurrency falling to its lowest levels this year, many fear get it back to the $20,000 mark. However, the indicator known as the 200 weekly moving average points to the cryptocurrency hardly hit the range you broke again in the middle of 2021. On this, the analytical firm Glassnode, maintains that bitcoin is getting closer to its realized or effective price, which drives more accumulation (the purchase of traders).
- Despite the market downturn, Bitcoin mining has been doing well in the last year. US companies engaged in the activity reported higher production and a higher profit in the first quarter of 2022, with increases of more than 150% year-on-year in the case of the generation of bitcoins. These companies are among the most important that operate from the United States, and encompass some 15 EH/s available to the network as a whole. Additionally, the Center for Alternative Finance at the University of Cambridge (CCAF) re-included Chinese miners in its statistics, following a recent update to its web platform. To the surprise of many, the mining power coming from the Asian giant represents 21.11% of the total Bitcoin hashrate.
- Developers of the Terra network, with its founder Do Kwon at the helm, proposed a new way out to solve the collapse that their terra USD (UST) and terra (LUNA) cryptocurrencies experienced last week. proposes fork the network and have 90% support between validators. The idea is to create a new network, Terra 2.0, and leave behind the previous one, which would become known as Terra Classic. The idea arose after the Luna Foundation decided to get rid of its reserves in BTC and other crypto assets for more than USD 3,103 million.
- Several companies reported losing their investments for the collapse of Terra. Among them is the Binance exchange that lost about 3 million dollars of the initial investment in LUNA (about 15 million units). In this context, scammers have appeared who promise to reimburse the losses of those affected. Some have received proposals from those who pretend to be a user service, promising them a refund. On the other hand, a South Korean law firm is preparing a lawsuit on behalf of several affected people. Lawyers also plan to apply for an interim seizure order on Do Kwon’s property.
- Regulators around the world have spoken out about Terra’s downfall. The G7, a multilateral group made up of several of the world’s main financial leaders (Germany, Canada, the United States, France, Italy, Japan and the United Kingdom) addressed the issue on May 19. The group prepared a preliminary document calling for speeding up global regulation for cryptocurrencies. Meanwhile, the president of the United States Securities and Exchange Commission (SEC), Gary Gensler, indicated that bitcoin investors require greater protection. or they could lose confidence in the markets.
If you want to know the meaning of several words of the terminology of the crypto world, you can consult them in the extensive Glossary of CriptoNoticias. Here’s a little preview with the word SFYL.
SFYL (Sorry For Your Loss): in Spanish, “I’m sorry for your loss.” It is humorously told to someone who has just made a bad investment.